{"id":11471,"date":"2023-11-20T03:40:11","date_gmt":"2023-11-20T07:40:11","guid":{"rendered":"https:\/\/craftbreweryfinance.com\/oldversion\/?p=11471"},"modified":"2023-11-20T17:47:41","modified_gmt":"2023-11-20T21:47:41","slug":"how-to-find-funding-for-a-new-brewery-part-4","status":"publish","type":"post","link":"https:\/\/craftbreweryfinance.com\/oldversion\/how-to-find-funding-for-a-new-brewery-part-4\/","title":{"rendered":"How to Find Funding for a New Brewery (Part 4)"},"content":{"rendered":"<p><strong>How to Find Funding for a New Brewery (Part 4)<\/strong><\/p>\n<p>Now that you&#8217;ve got a sources and uses <a href=\"https:\/\/craftbreweryfinance.com\/oldversion\/how-to-find-funding-for-a-new-brewery-part-1\/\">schedule<\/a>, financial <a href=\"https:\/\/craftbreweryfinance.com\/oldversion\/how-to-find-funding-for-a-new-brewery-part-2\/\">pro forma<\/a> and a business <a href=\"https:\/\/craftbreweryfinance.com\/oldversion\/how-to-find-funding-for-a-new-brewery-part-3\/\">plan<\/a>, it&#8217;s time to go raise money for your brewery.<\/p>\n<p><strong>Below is a listing of common (and not-so-common) funding options:<\/strong><\/p>\n<ul>\n<li>SBA loans\n<ul>\n<li>Depending on your situation, this may be your best bet&#8230;connect with Scott Birkner at Dogwood State Bank, sbirkner@dsbnc.com.<\/li>\n<li>You can learn more about SBA loans and find a brewery lender in this <a href=\"https:\/\/craftbreweryfinance.com\/oldversion\/brewery-sba-loans-simplified\/\">podcast<\/a>.<\/li>\n<\/ul>\n<\/li>\n<li>Traditional business loans\n<ul>\n<li>These require a strong credit history and good adherence to the &#8220;5 C&#8217;s&#8221;<\/li>\n<li>Character, capacity, capital, collateral, and conditions<\/li>\n<\/ul>\n<\/li>\n<li>Personal savings, family and friends\n<ul>\n<li>The usual starting point for funding a brewery.<\/li>\n<li>Don&#8217;t forget your friend&#8217;s friends. Maybe one of them knows Kevin Bacon.<\/li>\n<\/ul>\n<\/li>\n<li>Strategic partnerships\n<ul>\n<li>You may be renting space, maybe the landlord wants to own a piece of the brewery?<\/li>\n<li>This could be a solid way to raise equity and get a deal on rent.<\/li>\n<\/ul>\n<\/li>\n<li>Crowdfunding and grants\n<ul>\n<li>The money is out there, you just need to go get it.<\/li>\n<li>Check out this <a href=\"https:\/\/craftbreweryfinance.com\/oldversion\/how-to-get-brewery-grants-and-micro-loans-with-tranice-watts\/\">podcast<\/a> with Tranice Watts for inspiration.<\/li>\n<\/ul>\n<\/li>\n<li>Supplier and vendor financing\n<ul>\n<li>Brewery equipment companies may have their own financing arm.<\/li>\n<li>They&#8217;ll secure the equipment as collateral, likely take a down payment, and you&#8217;re off and running.<\/li>\n<\/ul>\n<\/li>\n<li>Angel investors and venture capitalists\n<ul>\n<li>The current climate is tough to get money from these folks, but it can be done.<\/li>\n<li>Make sure your financials projections are solid, you have a decent valuation estimate, and a good understanding of EBITDA.<\/li>\n<\/ul>\n<\/li>\n<li>Business incubators and business competitions\n<ul>\n<li>These programs may provide funding, mentors or other resources to startups in exchange for equity.<\/li>\n<li>Business plan competitions or other challenges may provide cash prizes or investments from the sponsoring group.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>The bottom line with brewery funding: The capital raise to start your brewery may come from a lot of different places.<\/p>\n<p><strong>Funding your brewery isn&#8217;t easy, but with hard work, time, patience, and the four steps below, you can do it:<\/strong><\/p>\n<ol>\n<li>Create a sources and uses schedule<\/li>\n<li>Build the financial pro forma<\/li>\n<li>Write your business plan<\/li>\n<li>Review the list of common (and not-so-common) funding sources, and get to work!<\/li>\n<\/ol>\n<p><strong>P.S. Learn more about the\u00a0<a href=\"https:\/\/www.bbfassociation.org\/bbfa-breweries\" target=\"_blank\" rel=\"noopener\">network<\/a>\u00a0of beer industry financial professionals: the Beer Business Finance Association. We talk about brewery loans, funding, and cash flow all the time!<\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How to Find Funding for a New Brewery (Part 4) Now that you&#8217;ve got a sources and uses schedule, financial pro forma and a business plan, it&#8217;s time to go raise money for your brewery. Below is a listing of common (and not-so-common) funding options: SBA loans Depending on your situation, this may be your [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11473,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"pgc_meta":"","_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"categories":[63],"tags":[],"class_list":["post-11471","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial"],"_links":{"self":[{"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/posts\/11471"}],"collection":[{"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/comments?post=11471"}],"version-history":[{"count":5,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/posts\/11471\/revisions"}],"predecessor-version":[{"id":11557,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/posts\/11471\/revisions\/11557"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/media\/11473"}],"wp:attachment":[{"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/media?parent=11471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/categories?post=11471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/tags?post=11471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}